Art of the Qualified Plan Audit

Every year, at least one retirement plan service provider tells us that a plan qualifies for a limited scope audit because their company has an SOC 1 report.

Every year, right around December 31st (and closer to January 1!), we sit down and start to draft up resolutions for the upcoming new year. Whether it’s aiming for a healthier life style, setting aside for targets at work, or perhaps being more fiscally responsible, it’s important to not only make these goals, but to have a plan in place for accomplishing them as well.

Type 1 SOC 1 reports provide plan auditors with an evaluation of the adequacy of the design and implementation of controls

In considering the completeness and accuracy of the benefit payment expense in Taft-Hartley health and welfare (H&W) plan financial statements, an auditor must consider what can go wrong.

When auditing claim payments, auditors must take into consideration whether:

BLS understands the importance that payroll audits play in the annual audit of Taft-Hartley plans’ financial statements.

In May 2015, the U.S. Department of Labor’s Employee Benefit Security Administration (EBSA) published the results of its assessment of the quality of retirement plan audits.

When an auditor is considering accepting an engagement to audit financial statements and/or after a new auditor has been engaged to audit financial statements that have been audited by another firm in previous years,

Contrary to popular belief, the audit procedures for a first-time audit of a previously small plan are not limited to the retirement plan’s financial activity for the year under audit.

The amount available under the 15-year catch-up provision is based on the number of years of service and the total contributions previously made.